Question

There is no exceptions to the law of demand in the case of _____________.

• A. Giffen goods
• B. Normal goods
• C. Articles of conspicuous consumption
• D. Ignorance of the buyer

Answer 1

Answer: (B)

Normal goods

Law of demand states that the demand curve has negative slope showing inverse relationship between price and the quantity demanded. Demand curve projects that when price rises, the demand falls and when the price falls, the demand rises.

There is no exception to the law of demand in case of normal good as in the case of normal good, when the price rises, the demand falls and when the price falls, the demand rises.